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Capital gain tax

lavanya (student) (39 Points)

21 February 2014

Hai...

I have a query:

1) My client has sold a plot for Rs.40 Lakhs in June,2010.He had invested the total considetation in Capital gain account scheme and claimed Exempltion u/s 54F. But he has failed to purchase another HP in 3 years and time limit of 3 years was completed in June,2013.

I Want to know whether CG tax on 40 Lakhs is to be paid immediately or before the filling of return for F Y 2013-14.Is there any interest/penalty for it.

2) He had tried to buy another HP in this 3 years and given advance for the same.Lateron the agreement was cancelled due to some reasons.In this case, can he able to get any exemption if he shows the proof of agreement and advance given.

3)He has another plan to buy HP till the completion of this Financial Year.If he buys it, is there any possibility to get exemption.

Kindly suggest me in this regard.

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4 Replies

Binod (Student CA Final ) (386 Points)
Replied 21 February 2014

Hello, friends

In case, the assessee deposits the amount in the Capital Gains Account Scheme but does not utilise the amount
deposited for the purchase or construction of a residential house within the specified period, the amount not so utilised
shall be charged as Capital Gains of the year in which the period of 3 years from the date of sale of the Original Asset
and it will be long term capital gain of that financial year.

CA. Kuldeep Singhi (Entrepreneur) (424 Points)
Replied 21 February 2014

Capital gain tax should be paid considering the advance tax installment as per assessee & i don't think he will get any exemption for advance payment made & neither he will be allowed further time.